Manulife Funding Administration has introduced the ultimate shut of its new non-public credit score fund, with $752m (£591m) raised.
The Manulife Capital Companions VII fund will put money into junior credit score capital in US-based center market corporations to focus on excessive yields with fairness upside. It can present contractual money coupons and capital appreciation for traders.
The fund’s investor haven’t been named however they embody institutional and personal capital traders, in addition to a capital dedication from Manulife.
Learn extra: Personal credit score managers earned €13.7m final yr
“We’re happy to have attracted curiosity within the fund from a extremely diversified investor base together with each institutional and personal capital traders who’re in search of a possibility to take part in firm worth creation,” mentioned Vipon Ghai, world head of personal fairness and credit score at Manulife Funding Administration.
“The profitable fundraise demonstrates the power and experience of our staff, the worth we convey to {our relationships} with our sponsors, and the potential alternatives for our traders.”
The fund’s funding method features a goal mixture of subordinated and second-lien debt and structured and customary fairness. This can permit for “significant participation in development that’s balanced by the potential for double digit yield,” added Josh Liebow, co-head of junior credit score at Manulife Funding Administration.
Learn extra: Manulife appoints BlackRock veteran as head of personal markets
Liebow and co-head of junior credit score Matt Szwarc will function portfolio managers of the fund.
“We’re excited to proceed the robust legacy of bringing traders excessive yielding risk-adjusted unlevered returns,” mentioned Szwarc.
“Since inception, our veteran staff has deployed greater than $3.3bn into 126 corporations because of this in a part of their expertise and skill to convey versatile capital to a selective portfolio of corporations that meet our funding standards.”
Manulife’s world non-public fairness and credit score platform has greater than $25bn in belongings underneath administration and unfunded commitments throughout non-public fairness funds, fairness co-investments, GP-led secondaries, senior credit score, and junior credit score.
Learn extra: Manulife to purchase Lord Hintze’s credit score investor CQS
